One of the founders of Mercurius Crypto Analysis, Orlando Telles, can be considered one of the most important and key investors in this market. Money Times.
The analyst values the growth and maturity of sectors and assets, as well as the creation of new ones, which indicate that 2022 is even more volatile.
According to research conducted by the analysis house, it is crucial to see significant growth in smart contract platforms – as Bitcoin has gained a large market share, the text says.
In this way, the importance of consolidating Ethereum is highlighted, in addition to the development of ecosystems such as Solana, Polkadot and Avalanche.
According to Telles, The rise of the NFT market (non-fungal tokens) and blockchain have introduced one of the most revolutionary concepts in the cryptocurrency market: “play to win ”and where the user earns money by playing.
The analyst points out metaverse growthsuch as Axie Infinity and The Sandbox game.
See also the full analysis of Orlando’s metaverse and blockchain gaming industry:
What will 2022 bring us?
According to Mercurius analyst, one of the aspects that should be on the radar of the crypto community is the high regulatory pressure of the market, especially for the decentralized finance (DeFi) segment.
He comments that US and European regulatory authorities are already showing clear signs stablecoin market warning (dollar-protected cryptocurrencies), showing signs of a regulatory agenda focused on cryptocurrencies for the coming year.
He went on to say that in the short term, this scenario could have a negative impact on the market, given the uncertainty of the regulations.
However, in the long run, there is a very positive outlook for the protocols that already exist before the regulations and that tend to adapt faster, he assessed.
This was one of the examples mentioned by the expert Hahashould launch Aave Arc next year, designed to serve the KYC / AML product to public institutions, and uniswapwhich seeks to establish partnerships with large centralized agents, such as Paypal.
“Such moves could lead to significant growth for the DeFi market in the second half of next year.”
In addition, changes in monetary policy around the world could also have a negative impact on the cryptocurrency market, especially BitcoinGod.
According to Telles, this is a move that should take place in the next quarter, due to the softening of the pandemic and the significant rise in inflation in several countries.
Telles explained that this scenario could prevent the presence of institutional investors because of low interest rates, they began to diversify and increase their chances of making the most of their portfolios.
“This class of investors may see even greater risk in this move in their positions in the market,” he says.
Smart contract industry scalability and upgrades
The Mercurius study also indicates that there is a need for significant movement in terms of protocol updates, especially smart contract platformssuch as Ethereum.
The most anticipated change is expected to take place in the first half of 2022 “Proof of Stake” settingAt an event known as “The Merge.”
This change will have a significant impact on the asset’s monetary policy and should have a positive effect on its value, according to the analysis firm.
In addition, a market focused on the blockchain scalability process can be highlighted, due to the high growth of smart contract platforms, Mercurius says.
As a result, assets such as Polygon (MATIC) in the second tier solution of the ETH network should evolve significantly.
In the Smart Contracts sector, it is planned to consolidate some first-tier solutions (Layer 1) with the expansion of several ecosystems, such as Solana, and Polkadot, which should see the maturity of the first operational parachutes in its network.
Crypt Beyond Bitcoin
In Mercurius’ analysis, one of the aspects that helped strengthen the year 2021 is that cryptocurrencies are not just Bitcoin, and that it is a complex network with many applications, from gaming to financial infrastructure. sector.
The result of this awareness, according to Telles, was the influx of capital venture capital never seen before, making it the largest investment cycle in the 2021 history of the cryptocurrency market.
This large volume of capital is expected to have significant long-term effects, especially in the last quarters of 2022 and early 2023.
“I believe that next year we will see new segments of the cryptocurrency market, such as Web 3.0, that data storage will create an even more independent market with many use cases, and that investments will be made in infrastructure for DeFi and blockchain games.”
According to the analyst, all these moves will be essential for an even longer cycle in the coming years, which could affect these sectors. main stream.